- If you're self employed or a business owner,
whether you're applying for a loan or mortgage
or even a visa or other situations
where you may need to prove your income,
it is highly likely you will be asked for a SA302 form.
In this video we will cover what exactly is a SA302.
4 reasons why you will need a SA302.
What does the form actually show?
Is a SA302 the same as a self-assessment tax return?
And finally, how can you get your SA302?
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If you're an employee or on PAYE,
then your pay slips are normally sufficient
in providing verification of income and financial ability
in the event you want to apply for a mortgage,
loan, visa application, or other verification reasons.
But what if you're self-employed
or a limited company business owner?
What if you are employed on PAYE
but have other sources of income
that could improve your affordability to borrow?
The SA302 form is HMRC solution to this
and it is a summary of income that has been declared
on your self-assessment tax return.
It is useful in situations
where you need to prove your income to lenders
and other interested parties.
The SA302 is an official form from HMRC
and contains their logo,
so act as a third party verification of your income.
The SA302 is usually available for the last 4 tax years,
assuming that a tax return was submitted
to cover each period.
A tax year runs from the 6th of April to the 5th of April
of the following year.
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The SA302 form is useful for anyone
who needs to prove their income
in an officially accepted format.
Although the most common seeker
of the SA302 are self-employed individuals
and limited company owners,
it can be useful for employed individuals
with additional income sources as well.
4 the most common examples
of when you might need to produce an SA302 are
when you're applying for a mortgage,
when you're taking out a loan,
in demonstrating income for a visa application,
or applying for grants.
Although these are some of the most common examples
we come across, technically any third party
that requires you to demonstrate your income,
could ask for a SA302.
The SA302 is a summary of earnings and taxation,
so it will include details of income from employments,
self-employment profits, profit from UK land and property,
dividends received, interest from banks,
building societies or other institutions,
and calculation of income tax liability on the above.
The summary also details your name
and tax reference for identification purposes.
An item that is not included on the SA302 are capital gains
which are usually considered one off events
and most loan and mortgage lenders
would not usually consider them
as a reliable source of income to borrow against.
This can leave those who make their money from investing
in a difficult position when it comes to borrowing.
For example, if you are somebody who makes money
from trading stocks or cryptocurrencies alone,
this could be considered high risk.
This would apply to the vast majority
of people with investment income
as they tend to be taxed under capital gains tax rules.
However, there are certain situations
where their activity could be considered a trade,
in which case the income may be considered
for lending purposes.
In short, no, the two are not the same.
A self-assessment tax return is known as a SA100.
The self-assessment is usually due by the 31st of January
following the end of the tax year
and is a means of declaring untaxed income,
earnings, and gain.
The SA302 then looks at the information
from the self-assessment that has been submitted
and summarizes the information.
Think of the SA302 as a summary of earnings.
Thankfully for you, due to the digitization of HMRC taxes,
if you have access to self-assessment
by a government gateway login, then you can download
and print your SA302 yourself very easily.
Just follow these simple steps to print a tax calculation,
in other words, a SA302.
Number one is to log into your government gateway account,
proceed to the self-assessment section,
navigate down to previously filed returns,
and you can select the year you want a SA302 for.
You can then continue through
to print your full calculation.
If you are represented by or have an accountant,
then they should be able to produce
and provide an SA302 going back up to 4 years for you.
However, your accountant can only make an online request
on your behalf for the SA302 itself